Cingular Wireless L.L.C. posted solid second-quarter financial with 1.1 million in net additions-surpassing most expectations-and improving customer and financial metrics.
“Cingular continues to make good progress on a variety of fronts,” said Stan Sigman, the carrier’s president and chief executive officer. “We are pleased with our performance in margins, postpaid subscriber net additions and revenue.”
Cingular said nearly all of its net additions were postpaid subscribers. The numbers bring the carrier’s total subscriber base to 51.6 million-way ahead of Verizon Wireless’ 45.5 million. However, some analysts expect Verizon Wireless to beat Cingular with 1.4 million subscriber additions in the quarter.
Verizon Wireless and Sprint Corp. plan to post their second-quarter earnings next week, while Nextel Communications Inc. is scheduled to report Thursday.
Cingular’s churn rate held steady at 2.2 percent, the same as in the first quarter. Cingular said the number primarily reflects the transition of former AT&T Wireless Services Inc.’s prepaid customers.
As for the carrier’s finances, Cingular recorded revenues of $8.6 billion, up 5.4 percent over the same quarter last year. The numbers combine Cingular’s and AT&T Wireless’ operations. The carrier reversed its $152 million loss from the first quarter to a net income of $317 million in the second quarter.
Cingular’s average revenue per user clocked in at $50.43, up 1.7 percent from $49.59 in the first quarter of this year, but down from the same quarter a year ago. The carrier said the decline from a year ago was due to the popularity of its family plans and its Rollover program.
However, Cingular said its ARPU increase from the first quarter was largely due to a jump in its data sales. Cingular’s data ARPU climbed more than 12 percent to $4.16 compared with $3.70 in the first quarter. The carrier said its text messaging, mobile instant messaging, mobile e-mail, downloadable ringtones, games, photo messaging and media bundles contributed to the spike.
In other Cingular news, the carrier said it plans to spend $59 million in Oklahoma and $71 million in Arkansas this year improving its coverage. The carrier said it will install 99 new cell sites and improve its capacity in Arkansas, and it will install 43 new cell sites in Oklahoma.
